Interbank call rates edge higher at 8.75/8.80%, higher from its previous close of 8.65/8.75% on Monday as demand edged higher in the first week of reporting cycle after RBI purchased Rs 6,156.74 crore of government bonds through an open market operation (OMO) auction on Monday, less than the notified amount. Last week, RBI governor Raghuram Rajan, in order to improve liquidity, announced that it plans to purchase Rs 8,000 crore of government bonds through OMOs .
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 40770 crore through repo window on November 19, 2013, while banks using special LAF borrowed Rs 41093 crore through repo window and parked Rs 4 crore via reverse repo window on November 18, 2013.
The overnight borrowing rates touched a high and low of 8.80% and 8.60% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.74% on Tuesday and total volume stood at Rs 19449.01 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.74% on Tuesday and total volume stood at Rs 19449.01 crore, so far.
The indicative call rates which closed at 8.65/75% on Monday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far.
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